PROJECT MANAGEMENT

[BBA 615]

PORTER'S FIVE FORCES UNIT

ON FIAT CORPORATION

Submitted By: -

SHUBHI SINGH

BBA(4530/09)

PORTER'S FIVE POWER ANALYSIS ELECTRONICS INDUSTRY

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1 . DANGER OF NEW TRADERS - LOW

вћў Economies of Range

вћў Item Differentiation

вћў Capital Requirements

вћў Moving over Costs

вћў Technology, Skills and Creativity

вћў Federal government Policy

2 . BARGAINING POWER OF BUYERS -HIGH

• Items are fairly undifferentiated

• Buyers encounter few switching costs

• Online shopping has increased the negotiating power of buyers

• Potential buyers are value sensitive and demand superior quality

3. NEGOTIATING POWER OF SUPPLIERS - LOW

• Big global source chain supervision

(Suppliers are generally not concentrated)

• Suppliers have to cut their prices or go out of organization

• Immediate negotiation with suppliers to be able to encourage:

• Reliable supply

• Quicker delivery

• Lower prices

• Many Oes start to produce their own elements in-house

4. RIVALRY AMONGST EXISTING COMETITORS - SUBSTANTIAL

вћў Numerous and rather equally well balanced competitors.

вћў Short item life-cycle

вћў High R & Deb costs

вћў Lack of differentiation or turning costs

вћў Imitation of technology

вћў Counterfeit items

вћў Low profit margins

вћў High quit barriers

Danger of Substitute Products

• There are few substitutes from the other industries, if any.

• Most of them are most often obsolete and have absolutely one feet out of door.

в†ђ For example:

• Digital Camera in the place of Film Camera

• Fax machines rather than overnight...

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